-19- 9. Whether Elements of Personal Pleasure or Recreation Are Involved We next examine whether elements of personal pleasure or recreation were involved in the activity. The presence of recreational or pleasurable motives in conducting an activity may indicate that the taxpayer is not conducting the activity for profit. Sec. 1.183-2(b)(9), Income Tax Regs. The fact that the taxpayer derives personal pleasure from engaging in the activity is not sufficient to cause the activity to be classified as not engaged in for profit, however, if the activity is, in fact, conducted for profit as shown by other factors. Jackson v. Commissioner, supra; sec. 1.183-2(b)(9), Income Tax Regs. Petitioner has been interested in cars throughout his life and obviously enjoys drag racing. Petitioner also testified, however, that there were aspects of the activity that he did not enjoy, including the heat on the track and the multiple layers of protective clothing he was required to wear. Petitioner further emphasized that, when he was unable to produce a profit from the activity, he stopped the activity. He testified that he did not enjoy it enough to continue without the possibility of financial gain. Although petitioner may have derived some pleasure from the drag racing activity, this factor does not outweigh the other factors indicating that petitioner engaged in the drag racing activity for profit. 10. Conclusion Considering all of the facts and circumstances of this case, we find that petitioner has proved that he engaged in the dragPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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